Uxin reports 134% year-over-year retail volume growth, projects over 130% increase for 2025, highlighting strong operational efficiency and strategic superstore expansion.

For our long term growth. Meanwhile, we are actively advancing superstore projects in several other cities and we plan to open four to six additional superstores in 2026, marking a transition into a phase of accelerated nationwide expansion for our. Uxin leader Shirong Yunzhuan. By now we believe that Yusin has established a clear and proven path to scaling its business model nationwide, driven by the coordinated execution of three core capabilities that are more precise pricing, higher customer satisfaction and superior operating efficiency. First, our machine learning based pricing system becomes increasingly effective as our retail scale expands. With a growing base of real transaction data used to train our models, pricing accuracy continues to improve, ensuring that each vehicle is competitively priced in real time. This allows us to maintain high inventory turnover of around 30 days. Second, our landmark large scale superstores play a critical role in enhancing the customer experience. By offering high quality, competitively priced vehicles supported by professional and reliable services, we are able to consistently improve customer satisfaction and referral rates, creating a self reinforcing cycle of brand trust and organic growth. Third, our fully integrated factory logistics retail operating model enables end to end control across procurement, reconditioning and retail sales. This model delivers operational efficiency that significantly outperforms traditional used car dealers while remaining highly standardized and replicable. As a result, new superstores reach maturity faster and losses during the early ramp up phase are more predictable and better controlled. Going forward. As long as the market conditions remain stable, we are highly confident in the sustained and rapid growth of our business. As Such, for the fourth quarter we expect our retail transaction volume to exceed 18,500 units, representing a year over year growth of more than 110%. For the full year 2025, we expect retail transaction volume to surpass 50,000 units, reflecting year over year growth of more than 130%. With that, I'll turn the call over to our CFO to walk you through the financial results.

Please.

Okay, Thank you DK hello everyone. I will continue to present the company's performance in both Chinese and English to better communicate with all of you. In the third quarter, our retail transaction volume reached 14,020 units, representing a 134% increase year over year and a 35% increase quarter over quarter. Sales at our existing superstores continued to grow while new superstores have come into operation progressively. Looking ahead, we expect our retail transaction volume to maintain a high growth trajectory over the next several years. Retail revenue for the quarter totaled 820 million RMB, up 84% year over year and 35% quarter over quarter. The average selling price, or ASV for retail vehicles was 58,000 RMB, compared to 59,000 RMB in the prior quarter and 74,000 RMB in the same period last year. While ASV declined as we shifted toward a more affordable inventory mix, the strong growth in transaction volume more than offset the pricing impact and drove our overall revenue extension. Our current inventory structure is well aligned with mainstream consumer demand, and we believe pricing has now stabilized at a rational level. As such, we expect ASP to remain relatively steady in the near term. Turning to our wholesale business, our wholesale transaction volume was 1,884 units in the third quarter, representing an 81% increase year over year and a 54% increase quarter over quarter. Total wholesale revenue was 33.2 million RMB, combining both retail and wholesale. Total revenue for the quarter reached 879 million RMB, representing a 77% increase year over year and a 34% increase quarter over quarter. Gross margin for the quarter was 7.5%, up 0.5 percentage points from 7% a year ago and up 2.3 percentage points from 5.2% in the prior quarter, marking the highest level over the past three years. The improvement was primarily attributable to the easing of the price competition in the new car segment during the third quarter, which supported a rapid margin recovery in the used car market. In addition, our Wuhan Superstore, which opened in February, has moved beyond its startup phase, with margin performance continuing to ramp up and driving a meaningful lift to this quarter's gross margin. Adjusted EBITDA loss for the quarter narrowed significantly to 5.3 million RMB, representing a substantial 43% reduction year over year and a 68% reduction quarter over quarter. Looking Ahead to the fourth quarter of 2025, we expect retail transaction volume to exceed 18,500 units, representing year over year growth of over 110%. Total revenue is expected to exceed 1.15 billion RMB. For the full year 2025, we expect retail transaction volume TO exceed 50,000 units, representing year over year growth OF over 130%. That concludes our prepared remarks for today. Thank you everyone. Operator we're now ready to begin the Q and A session.

We will now begin the Question and Answer session. To ask a question, you may press Star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press Star and two, once again, to ask a question, please press Star then one on your touchtone phone. At this time, we will pause momentarily to assemble our roster. Once again, to ask a question, please press Star then one to join the question queue. That's Star then one to join the question queue. The first question today comes from Dai Wenjie with SWS Research. Please go ahead.

Okay, Congratulations and analysis. Gross margin risk factors could further driven margin improvement go forward. Thank you. This quarter's gross margin was 7.5% representing a new high since we transitioned to the self operated model. And there are two main drivers behind this improvement. First, new car pricing has stabilized which naturally supports a recovery in used car profitability. At our existing Xi' an and Hefei Superstores, gross margin exceeded 8%, up nearly 2 percentage points sequentially. Second, profitability at our new Wuhan Superstore has also been improving. Our Wuhan Superstore officially opened in February and started from the third quarter. Its gross margin has improved significantly compared with the early operation phase in the second quarter. Looking ahead, we believe there is still substantial room for further margin expansion. First, as China continues to implement policies aimed at reducing excessive competition in the auto industry, we expect vehicle prices to remain stable or even trend upward over the coming quarters, which would be supportive for our margins. Second, as BK just mentioned, our data driven pricing capabilities continue to improve. Pricing errors are becoming less frequent and the proportion of loss making vehicles is declining. Finally, our value added services still have significant penetration upside. As higher margin ancillary revenue contributes more meaningfully to our revenue mix, this will further lift our gross margin. Over the long term. Our target gross margin is around 10% at our existing TM Huofei superstores, we are already seeing gross margin approaching this target, which gives us strong confidence in continued margin expansion. That's my answer. Thank you. Thank you. Thank you very much.

The next question comes from Fei Dai with TS Security. Please go ahead.

My first question is. Following the opening of the Zhengzhou Superstore, both sales and profitability ramp up seems to be faster than what we saw in Wuhan. Could management share what key initiatives drove this out? Performance and looking ahead, how long do you expect newly opened superstores and to take to reach stable operations? Thank you.

Thank you for your question. Our Zhengzhou Superstore has only been operating for about three months and monthly sales have already reached 900 units. Its profitability is also higher than what we saw at the same stage for the Wuhan Superstore. On the one hand, our Wuhan Superstore can be viewed as the first large scale replication of our superstore model and is already performing meaningfully better than our Xi' an and Hefei superstores. Zhengzhou in turn benefited directly from what we learned in Wuhan, from construction and launch to inventory build and sales ramp up, so our organization and operating systems are running more smoothly. On the other hand, as our sales volume expands, we now have a much larger pool of real transaction data to train our pricing system. This has further improved our pricing capability. The pricing system has adapted more effectively to the general market with more precise pricing which helps ensure sales efficiency and supports stronger profitability in the early stages of operation. For a standard new superstore with a planned capacity of approximately 3,000 vehicles, our current expectation is that it reaches breakeven in about nine months. This is consistent with what we achieved at the Wuhan Superstore. We expect inventory to reach its planned capacity in about 18 to 24 months, at which point both sales volume and profitability should reach a mature and stable level.

That's my answer. My second question is US used car company Carvana recently surpassed $100 billion market cap could management comment on the key similarities and difference between Carvana's model and using thank you.

Please go ahead. Carvana is a leading used car company in the US and has delivered very strong capital market performance. We have conducted in depth research on Carvana, Starting with the differences, the biggest distinction is the sales channel. Carvana sells online while Uxin operates through both offline superstores and an online Marketplace. Currently, over 70% of our sales come from offline superstores with online contributing roughly 30%. This mainly reflects the different market realities in China and the US at this stage. In China, a car typically represents a larger share of a household's assets, so people make purchase decisions more cautiously. As a result, many consumers still want an in store experience and a test drive before buying a used car. Over time, as auto consumption continues to develop and trust in the used car market keeps improving, we do expect the online share to increase as well. That said, we share many similarities. First, both companies operate under an own inventory model with large scale reconditioning through self operated facilities and tight control over every step of the process to reduce per unit cost and improve inventory and turnover efficiency. Second, given that used cars are a highly non standardized product, both Carvana and Eosin focus on precise pricing to ensure efficient vehicle turnover. Carvana's annual retail volume is around 500,000 units while Uxin currently sells about 50,000 units per year. These real transactions form the most critical training data for pricing models. As our retail scale continues to expand, we expect our pricing capabilities to further strengthen. Third, both companies prioritize customer satisfaction and brand reputation. Carvana's NPS is above 80 and our NPS reached 67 this quarter and has remained at the highest level in the industry for more than a dozen consecutive quarters. Strong word of mouth reflects the value we deliver to customers and also drives incremental referral traffic. Today, Uxin is a used car company with annual retail volume of approximately 50,000 units. We are highly confident that by continuing along our current development path, we can sustain year over year sales growth of more than 100% over the next several years and reach Carvana's current sales volume within four to five years. That's all I wanted to hear. Thank you.

This concludes our question and answer session. I would like to turn the conference back over for any closing remarks. Thank you all for participating on today's call. We are looking forward to reporting to you soon. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.